MarketsMOJO Upgrades N G Industries to 'Hold' Rating Based on Technical Trends and Attractive Valuation

N G Industries, a microcap healthcare services company, has recently received a 'Hold' rating from MarketsMOJO. This upgrade is based on the company's technical trend, which has improved from Mildly Bullish to Bullish on July 2nd, 2024. The stock's MACD and KST technical factors are also showing a bullish trend.
One of the reasons for this upgrade is the company's attractive valuation, with a ROE of 17.9 and a price to book value of 2. This indicates that the stock is trading at a fair value compared to its historical valuations. However, it is important to note that while the stock has generated a return of 57.62% in the past year, its profits have fallen by -39.4%.

The majority shareholders of N G Industries are the promoters, which can be seen as a positive sign for investors. The company has also shown consistent returns over the last 3 years, outperforming the BSE 500 index in each of the last 3 annual periods.

However, the company's long-term fundamental strength is weak, with a -11.53% CAGR growth in operating profits over the last 5 years. Additionally, its ability to service its debt is also weak, with a poor EBIT to Interest (avg) ratio of 1.61.

In the latest quarter, the company's results were flat, with a PAT (9M) of Rs 3.01 crore, which has grown at -59.60%. The non-operating income for the quarter was 82.74% of the Profit Before Tax (PBT).

Overall, while N G Industries may have potential for growth in the future, it is currently recommended to hold the stock due to its mixed financial performance and weak long-term fundamentals. Investors should carefully consider their options before making any investment decisions.